Chapter 13 Notes

Chapter 13 Notes - Chapter 13 The Corporate Income...

Info icon This preview shows pages 1–3. Sign up to view the full content.

View Full Document Right Arrow Icon
Chapter 13 The Corporate Income Statement and the Statement of Stockholders’ Equity Performance Measurement: Quality of Earnings Issues Objective 1: Define quality of earnings , and identify the components of a corporate income statement. Quality of earnings refers to the substance of earnings and their sustainability into future accounting periods. Because of the importance of the bottom line (net income) there is a significant interest in evaluating quality of earnings. (Basically this data is useful for investors to see if the stock is over or undervalued). Quality of earnings is affected by these items: Accounting methods and estimates Gains and losses on transactions Write-downs and restructurings Nonoperating items The corporate income statement includes: Revenues Expenses Gains and losses Income tax expense Discontinued operations Extraordinary gains and losses Earnings per share When a company has BOTH __________________ and continuing operations, the operating income section is called income from continuing operations.
Image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon
The Effect of Accounting Methods and Estimates
Image of page 2
Image of page 3
This is the end of the preview. Sign up to access the rest of the document.

{[ snackBarMessage ]}

What students are saying

  • Left Quote Icon

    As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.

    Student Picture

    Kiran Temple University Fox School of Business ‘17, Course Hero Intern

  • Left Quote Icon

    I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.

    Student Picture

    Dana University of Pennsylvania ‘17, Course Hero Intern

  • Left Quote Icon

    The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.

    Student Picture

    Jill Tulane University ‘16, Course Hero Intern